Consumer Beware: Counterfeit Scams Rise on Online Resale Sites

Many buyers on resale platforms are falling victim to counterfeit scams, as illustrated by the experience of Maheen, who purchased a brand-new Dyson Airwrap for £260 on Vinted. Although the product was priced significantly lower than the retail value of £400 to £480, and the seller boasted a perfect five-star rating, it turned out to be a dangerous counterfeit. After just a few uses, the Airwrap began to emit smoke, prompting Maheen to contact Dyson for verification. Her fears were confirmed when she received a letter stating the product was counterfeit and unsafe.

This story is not an isolated incident. Research from the credit reference agency Experian reveals that nearly 37% of Britons have experienced scams while buying or selling on online marketplaces, including Vinted, eBay, and Facebook Marketplace. The data highlights a concerning trend, particularly among younger consumers. Over half of Gen Z respondents—58%—reported being scammed, compared to just 16% of individuals over the age of 55.

Understanding the Risks of Online Resale Platforms

Victims of online scams often face significant financial losses. According to the study, nearly a quarter of those scammed lost between £51 and £100, while 13% reported losses exceeding £250. A small fraction indicated losses between £501 and £1,000. The most common scam reported was receiving fake or counterfeit products, affecting 34% of respondents. Other prevalent scams included requests to pay outside the platform (31%) and items that never arrived after payment (22%).

Many consumers are unaware that they have been scammed until the item is delivered. More than half of scam victims (51%) realized they were deceived only after receiving fake items or not receiving anything at all. Red flags to watch for include low-resolution photos, prices significantly lower than expected, and sellers rushing buyers into making payments outside the platform.

Protecting Yourself from Scams

To mitigate the risks associated with online purchases, potential buyers should closely review seller profiles and customer reviews prior to making a purchase. It is advisable to gather as much information as possible about the product. For instance, requesting a video of the item can provide additional assurance.

Sticking to secure payment methods is crucial; avoiding bank transfers can help protect against fraud. Should a scam occur, it is essential to report it to the marketplace and request a refund. Marketplaces typically require evidence, such as screenshots of conversations and payment details, to process claims.

Although Maheen was outside Vinted’s two-day buyer protection window, she assumed her case was special due to the product’s safety concerns. She found it challenging to communicate with Vinted, describing the experience as feeling like she was “talking to a bot.” With assistance from Guardian Money, she eventually secured her refund.

A spokesperson for Vinted stated, “The vast majority of transactions on Vinted take place without issue, and our teams work hard to ensure a smooth trading experience for all our Vinted members. When a dispute does occur between a buyer and a seller, we will mediate, working closely with our delivery partners and potentially asking for additional information or evidence, before issuing a final decision.”

If direct appeals to the marketplace yield no results, buyers have other options. Those who paid via debit card can request a chargeback through their bank. Additionally, credit card users may file a section 75 claim for purchases exceeding £100. For payments made through bank transfers, refund options may be less straightforward, but new fraud protection regulations could provide avenues for recovery.

As online resale platforms continue to grow in popularity, consumers must remain vigilant. Being informed and cautious can help protect against the rising tide of counterfeit scams that threaten to undermine the trust in these marketplaces.